REPUBLIC ACT No. 1573
AN ACT TO AMEND COMMONWEALTH ACT NUMBERED ONE HUNDRED EIGHTY-SIX AS AMENDED BY REPUBLIC ACTS NUMBERED SIX HUNDRED SIXTY, SEVEN HUNDRED TWENTY-EIGHT AND ELEVEN HUNDRED TWENTY-THREE.
Section 1. Subsection (c) of section two of Commonwealth Act Numbered One hundred eighty-six, otherwise known as the Government Service Insurance Act, is hereby amended to read as follows:
"(c) 'Salary, pay, or compensation' shall be so construed as to exclude all bonuses, per diems, allowances and overtime pay, or salary, pay or compensation given in addition to the base pay of the position or rank as fixed by law or regulations."
Section 2. Section four of the same Act, as amended, is hereby further amended to read as follows:
"Sec. 4. Scope of application of System. - (a) Membership in the System shall be compulsory upon all regularly and permanently appointed employees, including judges of the Courts of First Instance and those whose tenure of office is fixed or limited by law, upon all teachers except only those who are substitutes; and...
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Republic Acts
AN ACT TO AMEND COMMONWEALTH ACT NUMBERED ONE HUNDRED EIGHTY-SIX AS AMENDED BY REPUBLIC ACTS NUMBERED SIX HUNDRED SIXTY
Republic Act No. 1573
Summary of Republic Act No. 1573
Definitions:
- "Salary, pay, or compensation" excludes bonuses, per diems, allowances, and overtime pay. (Section 1)
Membership and Coverage:
- Membership is compulsory for regularly and permanently appointed government employees, judges, teachers (except substitutes), and Armed Forces officers and enlisted men. (Section 2)
- Optional membership is allowed for other employees, subject to certain conditions. (Section 2)
Contributions and Premiums:
- Rates of contributions or premiums for life insurance and retirement insurance are specified, based on the employee's monthly salary and employment status. (Section 3)
- Employers must pay their share of premiums unless the System finds they cannot afford it, in which case benefits will be adjusted actuarially. (Section 3)
- Unpaid premiums or contributions bear interest not exceeding 6% per annum. (Section 3)
Additional Premiums for Prior Service:
- Employers must pay additional premiums for an employee's service before June 16, 1951, with provisions for apportioning the obligation among previous employers. (Section 4)
Insurance Benefits:
- Members can select the form and terms of their insurance coverage, subject to Board rules. (Section 5)
- Civilian employees insured between June 16, 1951, and September 30, 1956, can change their old insurance policy. (Section 5)
Retirement Benefits:
- Upon retirement after faithful and satisfactory service, members are entitled to a life annuity guaranteed for at least 5 years, with the amount based on years of service and average monthly salary. (Section 6)
- The maximum monthly annuity at age 57 cannot exceed two-thirds of the average monthly salary or P500, whichever is smaller. (Section 6)
- Members can choose alternative benefit options, such as joint-life annuity, lump-sum payment, or other approved benefits. (Section 6)
- Disability benefits are provided based on the length of service. (Section 6)
Conditions for Retirement:
- Members have the option to retire after 30 years of service and attaining age 57, with provisions for earlier retirement based on age and service. (Section 7)
- The last 3 years of service before retirement must be continuous, with exceptions for leaves of absence and separation due to position abolition or reduction in force. (Section 7)
- Annuitants receiving a reduced annuity can be reappointed to a position, subject to certain conditions. (Section 7)
Reconstitution of Service Record:
- Employees must reconstruct and submit their service record prior to June 16, 1951, within 2 years, with provisions for extension. (Section 8)
Additional Powers of the Board:
- The Board can issue mortgage insurance on properties mortgaged with the System. (Section 9)
- The Board can exclude employees from compulsory membership if their employer cannot pay the required premiums. (Section 9)
Personnel:
- The Board can appoint a general manager, assistant general managers, managers, medical director, and actuary, and fix their compensation. (Section 10)
- The general manager can appoint additional personnel, subject to Civil Service laws and regulations. (Section 10)
Investment of Funds:
- The Board can invest funds in various ways, including real estate loans, loans to local governments, loans for toll bridges and self-liquidating projects, and other authorized investments. (Section 11)
Settlement of Claims:
- The System can adopt rules to expedite the settlement of claims, including payments to estates, minors, and lawful beneficiaries. (Section 12)
Penalties:
- Limits are set on fees that attorneys, agents, or persons can charge for services related to claims. (Section 13)
- Penalties are imposed for misuse of collected premiums, contributions, or other amounts due to the System. (Section 13)
Definitions:
- "Salary, pay, or compensation" excludes bonuses, per diems, allowances, and overtime pay. (Section 1)
Membership and Coverage:
- Membership is compulsory for regularly and permanently appointed government employees, judges, teachers (except substitutes), and Armed Forces officers and enlisted men. (Section 2)
- Optional membership is allowed for other employees, subject to certain conditions. (Section 2)
Contributions and Premiums:
- Rates of contributions or premiums for life insurance and retirement insurance are specified, based on the employee's monthly salary and employment status. (Section 3)
- Employers must pay their share of premiums unless the System finds they cannot afford it, in which case benefits will be adjusted actuarially. (Section 3)
- Unpaid premiums or contributions bear interest not exceeding 6% per annum. (Section 3)
Additional Premiums for Prior Service:
- Employers must pay additional premiums for an employee's service before June 16, 1951, with provisions for apportioning the obligation among previous employers. (Section 4)
Insurance Benefits:
- Members can select the form and terms of their insurance coverage, subject to Board rules. (Section 5)
- Civilian employees insured between June 16, 1951, and September 30, 1956, can change their old insurance policy. (Section 5)
Retirement Benefits:
- Upon retirement after faithful and satisfactory service, members are entitled to a life annuity guaranteed for at least 5 years, with the amount based on years of service and average monthly salary. (Section 6)
- The maximum monthly annuity at age 57 cannot exceed two-thirds of the average monthly salary or P500, whichever is smaller. (Section 6)
- Members can choose alternative benefit options, such as joint-life annuity, lump-sum payment, or other approved benefits. (Section 6)
- Disability benefits are provided based on the length of service. (Section 6)
Conditions for Retirement:
- Members have the option to retire after 30 years of service and attaining age 57, with provisions for earlier retirement based on age and service. (Section 7)
- The last 3 years of service before retirement must be continuous, with exceptions for leaves of absence and separation due to position abolition or reduction in force. (Section 7)
- Annuitants receiving a reduced annuity can be reappointed to a position, subject to certain conditions. (Section 7)
Reconstitution of Service Record:
- Employees must reconstruct and submit their service record prior to June 16, 1951, within 2 years, with provisions for extension. (Section 8)
Additional Powers of the Board:
- The Board can issue mortgage insurance on properties mortgaged with the System. (Section 9)
- The Board can exclude employees from compulsory membership if their employer cannot pay the required premiums. (Section 9)
Personnel:
- The Board can appoint a general manager, assistant general managers, managers, medical director, and actuary, and fix their compensation. (Section 10)
- The general manager can appoint additional personnel, subject to Civil Service laws and regulations. (Section 10)
Investment of Funds:
- The Board can invest funds in various ways, including real estate loans, loans to local governments, loans for toll bridges and self-liquidating projects, and other authorized investments. (Section 11)
Settlement of Claims:
- The System can adopt rules to expedite the settlement of claims, including payments to estates, minors, and lawful beneficiaries. (Section 12)
Penalties:
- Limits are set on fees that attorneys, agents, or persons can charge for services related to claims. (Section 13)
- Penalties are imposed for misuse of collected premiums, contributions, or other amounts due to the System. (Section 13)